Why Venezuela Sanctions Are Even More Bullish for Oil Than Iran Sanctions

New U.S. sanctions on Venezuela’s oil production are expected to further crimp the country’s output and reduce global supply even more than sanctions on Iran—a development that could provide another boost to rising crude prices. Oil prices in the U.S. have risen more than 19% this year to $72.13 a barrel, driven in large part by OPEC cutbacks and supply disruptions. These forces, along with rising global demand for oil, have combined to shrink what had been a supply glut that dragged down U.S. prices below $30 a barrel in 2016 before they recovered. The Trump administration’s decision this month to exit from the Iran nuclear agreement and restart sanctions stoked concerns that global output could decline further. Now, Venezuela is emerging as possibly a greater and more immediate risk to global oil supply. Washington announced fresh sanctions on Monday after condemning as a “sham” the process that led […]